Hanwha to face profit squeeze after new preferred share issurance

[THE INVESTOR] Hanwha Corp.’s decision to raise 400 billion won by issuing new preferred shares may lead to profit squeeze due to growing dividend payments, NH Investment & Securities said in a report on June 23. The trading unit of Korean conglomerate Hanwha Group said that it would issue new 20 million preferred stocks to enhance its financial stability in a regulatory filing on June 22. Hanwha GroupShares of Hanwha shed 1.08 percent to trade at 36,700 won ($US31.90) as of 2:22 p.m.Kim Dong-ya

June 23, 2016

KEXIM to issue up to W1tr CoCo bonds

[THE INVESTOR] The Export-Import Bank of Korea will issue contingent convertible bonds on June 29.The export credit agency hopes to raise between 700 billion won (US$605 million) to 1 trillion won with the tier 2, 10-year CoCos. The interest rate is expected to be between 2.1 percent and 2.2 percent. A number of organizations including the National Pension Fund are said to have expressed interest in the bonds.The Export-Import Bank of Korea.The move is aimed at securing capital to prepare for th

June 22, 2016

LG International’s Q2 operating profit to surge 48%: report

[THE INVESTOR] LG International, a trading arm of LG Group, will post improved second quarter earnings, local brokerage firm NH Investment & Securities said on June 22 while maintaining its “buy” rating. According to the securities firm, LG International’s Q2 operating profit is projected to jump 48 percent on year to 44.9 billion won (US$38.8 million). “The market condition for LG International’s resource development business is improving as copper and coal prices have remained at the previous

June 22, 2016

Green Cross Labcell, ST Pharm to go public

[THE INVESTOR] Korean pharma companies Green Cross Labcell and ST Pharm will list on the secondary bourse KOSDAQ on June 23, the Korea Exchange announced on June 22. Green Cross Labcell, a Green Cross affiliate that develops drugs for incurable diseases, posted 34.5 billion won (US $29.8 million) in sales and operating profit of 2.3 billion won last year. The initial public offering is priced at 18,500 won. ST Pharm, launched in 2008, recorded 138 billion won in sales and 25.2 billion won in ope

June 22, 2016

Korea Exchange seeks cross-listing with Hong Kong Exchanges

[THE INVESTOR] The Korea Exchange has signed a letter of intent with Hong Kong bourse operator, the Hong Kong Exchanges and Clearing, to cross-list their stocks. Under the deal, futures on the Mini KOSPI 200 will be available in Hong Kong while futures on the H-shares index will become listed on the local bourse. If successful, the Korea Exchange will become the first foreign country to list futures on the H-share index. H-Shares, indicating shares of companies incorporated in mainland China tha

June 21, 2016

[ANALYST REPORT] Petrochemical Industry: Key factors that will transform market landscape

The Asian petrochemical market has been bearish due to a surge in oil prices (affect cost) and China’s heightened credit risk (affects demand), in the run-up to major macroeconomic events in June. We expect capacity expansion projects (affect supply) to be delayed until after 2017. That being said, upon the easing of the macroeconomic issues, chemical spreads should widen and petrochemical players’ valuation merit should increase on solid quarterly earnings.Polymer product (including PE, PP, and

June 21, 2016

[ANALYST REPORT] Lotte Shopping: Momentum lost for beleaguered Lotte

1) Investment highlights- We downgrade our rating on Lotte Shopping to Marketperform and cut our target price to KRW240,000.- Uncertainties are swelling over the Lotte Group, as prosecutors expanded their investigation into the conglomerate’s alleged activities that include the creation of a slush fund through cross-affiliate transactions, illegal lobbying to build Lotte World Tower, preferential orders to affiliates, exaggerating sales, intra-family real estate transactions, etc.- Contrary to e

June 21, 2016